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Turkish low-cost airline Pegasus Airlines will buy the domestic company ČSA, which owns its own airline Smartwings. Pegasus announced on the X network that it has signed an agreement to take over Smartwings. According to the Turkish press, it will pay 154 million euros (3.8 billion crowns).
The price may still change based on the terms of the contract. Pegasus expects the transaction to be closed in 2026. It still needs to be approved by authorities in the Czech Republic and in other countries where Smartwings operates. ČSA is owned by entrepreneurs Jiří Šimáně and Roman Vik through the company Prague City Air.
“Prague City Air announces that it has agreed with Pegasus Airlines to commence a sales process consisting of the sale of ČSA, which is to be completed by the transfer of ČSA shares after obtaining the necessary approvals from regulators and other third parties and fulfilling other conditions precedent within the next 12 months. ČSA owns 100 percent of Smartwings shares,” said Smartwings spokesperson Vladimíra Dufková.
A binding agreement was signed by Prague City Air, the seller, and Unimex Group, the assignor of its receivables. The agreement covers the entire share capital, including the equity of the Smartwings Group and the assumed debts of shareholders.
“Now, with the combined fleet of Czech Airlines and Smartwings, we are entering the next phase of our journey,” said Oztürková. “Two distinct brands – Smartwings and Pegasus – will continue to spread their wings globally with a common vision,” said Pegasus CEO Güliz Öztürková.
According to Capitalinked.com analyst Radim Dohnal, it is a shame that Prague will decline significantly as an air transport hub. However, he was surprised by the size of the transaction. “You are showing that it is very good that during the Covid period we rejected the idea that ČSA/Smartwings is something strategic for the state and should receive some support from the state for that. As for the purchase price, I am quite surprised by its amount,” adds Dohnal.
According to the media, the Polish airline LOT also wanted to buy Smartwings. “As for the purchase price, I believe that it corresponds to the current market situation. The Turkish bidder had to offer more attractive conditions than competitors, for example the Polish LOT, which is often mentioned in the media,” says Ondřej Berka, director of investment banking at WOOD & Company.
A strong Turkish company
According to him, this is a logical and meaningful step, as both airlines complement each other well with their coverage of European and Middle Eastern destinations. “The shareholder of Pegasus Airlines belongs to a very capital-strong and growth-oriented Turkish company, so for the future of Smartwings, the transaction means ensuring the company’s long-term stability and growth potential,” added Berka.
According to Petr Škoda, director of logistics company JUSDA Europe, the entry of Pegasus into Smartwings confirms the trend of consolidation in regional air transport and at the same time the efforts of strong players to secure stable capacity in key geographical hubs between Europe, the Middle East and Asia.
“In terms of probable impacts, the most common scenario in similar cases is the gradual integration of the fleet, unification of operating standards and optimization of routes. In the short term, there may be some operational uncertainty or adjustments to the offer, but in the medium term, the market usually benefits from higher efficiency, better connectivity and stronger price discipline. For customers – whether in passenger or cargo transport – this often means a wider network of destinations and more stable services,” Škoda added.
Smartwings has been operating on the market for 28 years, previously under the name Travel Service. With 49 aircraft, it is the largest Czech airline belonging to the Smartwings Group. The company operates scheduled routes to 80 destinations, charter flights and private flights.
Pegasus Airlines, headquartered in Istanbul, was founded in 1990. The company now operates 124 aircraft and this year ordered 100 Boeing 737 MAX-10 aircraft with options for another 100 of the same type and 36 Airbus A321neo aircraft. The Pegasus network includes 155 destinations in 54 countries.
source: ČTK, Newsgate